OVER a million workers are set to get a bumper pay rise as the National Living Wage goes up in the Budget.
Chancellor Rachel Reeves is due to announce major plans to boost minimum wage by more than six per cent in 2025.
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Ministers have promised to “raise the floor” on wages for low-paid workers.
Currently a whopping 1.6 million people receive the National Living Wage which sits at £11.44-an-hour for workers aged over 21.
But Reeves is due to announce plans to raise this by at least 68p – leaving many thrilled by the pay rise.
Original estimations say it will be raised to £12.12 – a six per cent boost – but a government source has claimed it may well be over that percentage.
They suggested a new rate of £12.20-an-hour was also close to being agreed on the commission.
The changes will come into effect on April 1, 2025.
This will see it raised well above inflation with plans also said to be in place to benefit younger workers.
Ministers say that those aged between 18 to 20 will eventually be paid the exact same as older workers under Labour’s plans.
Legally, those aged under 21 can currently be paid below minimum wage at a lower rate of just £8.60-an-hour due to their youth.
But ministers are now calling for a “single adult rate” which will have a blanket minimum allowance for all adults in the UK, say the Times.
At the Budget on Wednesday Reeves is expected to announce a bigger increase for younger staff to get closer to the over-21 rate.
The increase comes after ministers told the Low Pay Commission that the National Living Wage can’t drop below two-thirds of median earnings.
But businesses have already warned that if the six per cent expected rise turns out to be true then it will also see an increase in the national insurance contributions being paid on people’s wages.
Nye Cominetti, the principal economist at the Resolution Foundation, said: “Millions of low earners are set for good news in the Budget when the chancellor announces the latest rise in the minimum wage.”
Paul Nowak, general secretary of the TUC, added: “At a time when the cost of living is still very high the lowest paid would really benefit from a decent increase in the minimum wage.
“We know that low-paid workers spend more of their cash in their local economies.
“So any increase in their spending power will benefit local firms too.
“Every time the minimum wage goes up there are some voices who predict this will drive up unemployment. Every time they are wrong.”
Who gets the National Minimum Wage and am I entitled?
TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer.
You are also entitled to the National Minimum Wage if you are an agency worker.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
Anyone who thinks they are not getting paid fairly should raise the issue with their employer in the first instance.
If this is ineffective, the next step is to file a complaint on the government’s website.
You can do this by visiting the Government website.
Employers who do not pay the minimum wage can be publicly “named and shamed”.
Those who blatantly fail to comply are also at risk of facing criminal prosecution.
Wednesday’s Budget is set to be the first one under Labour government for 14 years but some predicted changes have already been scrutinised by many.
A 50 per cent rise in bus fares is expected to be announced.
The £2 cap will increase to £3 in a bid to help plug the £22bn black hole in the public purse.
Inheritance and capital gains tax will also go up, alongside a two per cent rise on National Insurance paid by employers.
Income tax thresholds will be held beyond 2028, while duties on beer and vapes are set to rise.
Sir Keir Starmer has also ducked calls to freeze fuel duty but announced that Reeves will pledge £240 million towards “getting Britain working”.
“Trailblazers” in local areas will bring together and streamline work, health, and skills support to disabled people and the long-term sick.
Six ways to land a pay rise
By Leah Milner
A PAY rise would be just the thing to ease pressures from the cost of living crisis.
Moneysavingexpert.com recently found in a poll that 38% of its respondents had successfully asked for a raise.
Here, Abby Robbins, who is the founder of recruitment agency yellowbricks.co.uk, has advice on how to do the same . . .
ASK TO RECEIVE: It’s a good idea to get into the habit of asking your colleagues and managers for feedback. This will build your confidence and allow you to show others in the business how important you are to the company.
PREP AHEAD: Think about the words you will use and write down the reasons why paying you more could benefit the business. Think about the objections you might receive and write down counterarguments.
Take a pad and pen to the meeting and note down anything they say.
TIME IT RIGHT: The best time to ask is when you have recently completed a “high-impact task” or where you had praise. During a one-to-one or an appraisal is good, or you could ask for time to have a word privately.
FACE OFF: Getting some face-to-face time will have more impact, and you can see how you are being received.
If you choose to write an email, be clear about what you are asking for in the introduction.
Then add strong work-based examples about why you deserve it.
End it by stating you feel confident that your manager understands your position.
TRACK YOUR TASKS: Keep a diary or notes on your phone of those “above and beyond” moments where the business or the team was improved by your actions. You will be surprised how quickly you forget these “wow” moments.
HAVE A PLAN: If it is a flat no, then ask your manager to explain why. Remain calm and don’t leave the conversation without having an action plan: What will need to happen for you to get the pay rise? Get your manager to set practical objectives to help.
